Dubai’s weakened luxury market is offering major value, with cheaper prices than most major global cities, according to a report from Core Savills.

Prime prices in Dubai have been in freefall since 2014, when the collapse of oil prices hit wealth in the region and many high-end buyers in the city. Recent market data show the emirate’s housing market has hit the bottom of its downslide, meaning that now is the time to invest, according to the report out Sunday.

“The top segment may provide better prospects for investors in the coming few years,” according to the report.

For instance, prices in a few luxury quarters, like the towering Burj Khalifa, are down 70% from their peak in 2014, Mansion Global previously reported.

Prices are now cheaper than almost all comparable luxury hubs. High-end homes are around 40% less expensive than Singapore and 50% less expensive than Moscow and Paris, according to the report.

Asian capitals like Tokyo and Shanghai are 60% to 70% more expensive than Dubai when it comes to luxury property.

Buyers get more space for their money, as well.

In elite Monaco, US$1 million will get you only 22 square meters of luxury home (236 square feet)—or a modest dining room, according to the report. That amount will get you 52 square meters (560 square feet) in London, 55 square meters (592 square feet) in New York and 78 square meters (840 square feet) in Paris.

In Dubai, $1 million gets 150 square meters (1,615 square feet)—triple the space in New York or London.

The taxes you pay to buy and own a home in Dubai are less than in most other luxury hubs, according to the report.

In New York, for example, owners spend around 13% of the purchase price in taxes to buy, hold and sell a home over a five-year span, according to the Core Savills report. Owners pay a whopping 33% in Hong Kong and 27% in Vancouver.

In Dubai, owners spent about 7% of the purchase price in taxes over a five-year ownership period—the best of the cities Core Savills measures apart from Moscow, there the cost is closer to 3%.

Ultra-wealthy residents of Dubai will grow by 60% over the coming decade, refueling the currently depressed luxury property market there, according to a report released Wednesday by Knight Frank.

The city’s ultra-high-net-worth population—those worth over US$30 million—is expected to bloom thanks to Dubai’s foundation as a Middle Eastern hub for corporations and strengthening ties with China. The city already has one of the highest concentrations of millionaires in the Middle East—they account for two-thirds of Dubai’s population, according to the report.

The research on Dubai is part of the global brokerage’s annual “Wealth Report,” covering trends in the living and buying habits of the world’s wealthy.

Since 2014, global and local factors have held Dubai’s prime property market back despite the large population of well-heeled buyers. The oil-price meltdown paired with stricter mortgage regulations and an oversupply of luxury development have caused several years of declining prices in the city. In 2017, prime prices fell 5%, according to Knight Frank.

But recent data points to the beginnings of a recovery, as prime prices bottom out and the government logs increased activity. Luxury transactions were up 6.6% in the third quarter of 2017 and up 5.7% in the fourth quarter, according to the report.

The predicted increase of wealthy residents, particularly a cohort of Chinese, in the United Arab Emirates is expected to help turn around the slumped luxury market in Dubai.

Over the past two years, the Dubai Investment Development Agency has forged closer commercial relations with Shanghai—bringing the wave of new ultra-wealthy in China to Dubai. The number of Chinese worth more than $30 million has nearly quadrupled over the past decade, according to the report.

Where will the newest wealthy live?

Established luxury neighborhoods in Dubai include the man-made archipelago Palm Jumeirah, Downtown Dubai—home to the Burj Khalifa— as well as Emirates Hills and The Lakes, according to Knight Frank. New infrastructure near these prime hubs is expected to strengthen their desirability and improve prices.

I am an Indian citizen and I want to invest in Dubai to secure residency. If I buy property in Dubai, will they give me a lifelong residence visa? What are the criteria to get a visa if I buy an apartment? SS, India

It is not possible for any non-GCC national to get lifelong residency in the UAE, even if they purchase property. While it can be possible for an expat to obtain a residency visa based on property ownership, the rules are very strict and the visas are valid for either six months or two years only. There is no guarantee that anyone buying a property will be granted a visa and they do not permit a person to undertake any form of employment in the UAE.

To make an application, the property must have a purchase price of a minimum of Dh1 million and the outstanding mortgage must be no more than 50 per cent. The applicant must have an income of at least Dh10,000 per month from a verifiable source, but this cannot be not from employment in the UAE. Any application must be made to Dubai Economy and the Dubai Land Department for consideration with visas granted on a case-by-case by case basis – approval is by no means automatic. Visas are issued for up to two years under the current rules. In accordance with standard Dubai rules, applicants must undergo a medical examination and organise their own Dubai Health Authority compliant medical insurance. I would reiterate that a property related visa does not permit an individual to work in the UAE, only to reside here, so if they take up employment the property visa must be cancelled with immediate effect and there is no guarantee that any application will be approved or renewed.

What is the procedure if I want to change jobs? I am on a limited contract visa and have been in my job for six months. SH, Sharjah

Formal notice of resignation is the first step and this should be provided in writing. In most cases 30 days’ notice is required per UAE Labour Law but check your contract as in a few cases a longer period may be required. Someone breaking a fixed contract may also receive an employment ban depending on their level of education and the action of the employer, although this would not apply if changing employer within the same free zone.

As SH will be breaking the terms of a limited contract, he must pay a penalty in accordance with Article 116, which states: “Should the contract be rescinded by the worker for causes not set forth in Article 121, the worker shall be bound to compensate the employer for the loss incurred thereto by reason of the rescission of the contract, provided that the amount of compensation does not exceed the wage of half a month for the period of three months, or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.” This penalty is roughly equivalent to income for 45 days.

I will soon complete six year of service with my company and have been on a limited contract. I will be leaving and received the details of my end of service gratuity calculations from the HR department and they state that I am entitled to gratuity of 21 days for the first five years and 30 days for the sixth year. From what I have read in online articles, I am entitled to 30 days each year from the first year as I have completed more than five years and I am on a limited contract. HR will not believe me and say I need to show them the law that proves this. Can you help? GB, Dubai

In this situation the HR department is correct. This is covered in Article 132 of UAE Labour Law which states: “The worker having spent one year or more in continuous service shall be entitled to an end of service gratuity upon the termination of his service. The days of absence from work without pay shall not be included in the calculation of the period of service, and the gratuity shall be calculated as follows: 1 – The wage of twenty-one days for each of the first five years of service. 2 – The wage of thirty days for every additional year. Always provided that the total gratuity does not exceed the wage of two years.” A payment of 30 days is clearly for ‘additional’ years, so for those in excess of the first five years. GB is entitled to no more than the HR department has advised.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 25 years’ experience. Contact her at [email protected] Follow her on Twitter at @FinancialUAE.

The advice provided in our columns does not constitute legal advice and is provided for information only.

Irrespective of where you stay or the kind of accommodation you have, we can all agree that rent is the single biggest expense each month for any expat resident in the UAE. For Dubai, experts say that at least 40 per cent of a resident’s income goes into paying rent.

A one-bedroom apartment could cost anywhere from Dh50,000 to Dh90,000 per year as rent depending on where you stay. While rents have reportedly been falling across the country, these ranges still apply in most areas.

Is buying worth it? Yes, if you’re planning to be in Dubai for a really long time – upwards of 15 years we would say. Most people in the UAE end up staying longer than they originally thought. So, unless you’re only planning to stay less than 10 to 12 years, buying might be a great option for you.

Comparing the two: Buying vs. Renting in Dubai For the purpose of this comparison we are using a one-bedroom apartment near the Al Jafiliya area as a case study. For renting, we are using Dh65,000 as our sample price (based on the RERA Rental Increase Index) and Dh1.3 million as the sale price for our off-plan apartment.

One-time expenses

As you can see the initial spend for property purchase is almost 20 times that of a rental. However, most of it is down payment, which acts as initial equity for the asset that will be your home.

Yearly expenses for 20 years The following are the yearly expenses for 20 years in each scenario. We are going to assume that the rent increases by 15 per cent after ten years (easier for calculation) and that payment of mortgage amount stays the same per year (which is the case usually.)

Total amounts In 20 years, renting could cost you upwards of Dh2.16 million not including utility bills and other amenities. Buying a house spread over the same period of time could cost you upward of Dh1.76 million not taking into account other incidentals and utilities. In comparison, everything you pay to buy is directly or indirectly towards something in your own name; unlike rent which is payment for a service with undeniable perks of stability, flexibility and no debt issues.

Verdict For buying: At the end of 20 years you end up paying less for buying overall even after the initial spend. Your average monthly rent is at a stable low of around Dh4,166. Not to mention that you would then be a proud owner of Dubai property, which could be sold or rented out to earn back all your investment with profits.

The 40 per cent you spend on living in Dubai comes back to you in another form. The loan doesn’t require any collateral other than the property itself. For renting: Owning property comes with the financial pressure of having to stay and work in the UAE until your mortgage is paid off. Unlike for your home country, this means having valid employment (and residency) to keep your monthly payments going. Selling your property is not as easy as you would think and this means you may not be able to leave at a moment’s notice. The loan or mortgage uses the property as collateral, so in case you can’t pay off the loan, the property goes to the bank.

Disclaimer: This is a guide only and uses approximate figures and current expense items for the comparison. Gulf News is not responsible for any new items of expense being added or changes in fees at any time. The costs and rents used are averages to illustrate the differences.

Dubai’s weakened luxury market is offering major value, with cheaper prices than most major global cities, according to a report from Core Savills.

Prime prices in Dubai have been in freefall since 2014, when the collapse of oil prices hit wealth in the region and many high-end buyers in the city. Recent market data show the emirate’s housing market has hit the bottom of its downslide, meaning that now is the time to invest, according to the report out Sunday.

“The top segment may provide better prospects for investors in the coming few years,” according to the report.

For instance, prices in a few luxury quarters, like the towering Burj Khalifa, are down 70% from their peak in 2014, Mansion Global previously reported.

Prices are now cheaper than almost all comparable luxury hubs. High-end homes are around 40% less expensive than Singapore and 50% less expensive than Moscow and Paris, according to the report.

Asian capitals like Tokyo and Shanghai are 60% to 70% more expensive than Dubai when it comes to luxury property.

Buyers get more space for their money, as well.

In elite Monaco, US$1 million will get you only 22 square meters of luxury home (236 square feet)—or a modest dining room, according to the report. That amount will get you 52 square meters (560 square feet) in London, 55 square meters (592 square feet) in New York and 78 square meters (840 square feet) in Paris.

In Dubai, $1 million gets 150 square meters (1,615 square feet)—triple the space in New York or London.

The taxes you pay to buy and own a home in Dubai are less than in most other luxury hubs, according to the report.

In New York, for example, owners spend around 13% of the purchase price in taxes to buy, hold and sell a home over a five-year span, according to the Core Savills report. Owners pay a whopping 33% in Hong Kong and 27% in Vancouver.

In Dubai, owners spent about 7% of the purchase price in taxes over a five-year ownership period—the best of the cities Core Savills measures apart from Moscow, there the cost is closer to 3%.

Ultra-wealthy residents of Dubai will grow by 60% over the coming decade, refueling the currently depressed luxury property market there, according to a report released Wednesday by Knight Frank.

The city’s ultra-high-net-worth population—those worth over US$30 million—is expected to bloom thanks to Dubai’s foundation as a Middle Eastern hub for corporations and strengthening ties with China. The city already has one of the highest concentrations of millionaires in the Middle East—they account for two-thirds of Dubai’s population, according to the report.

The research on Dubai is part of the global brokerage’s annual “Wealth Report,” covering trends in the living and buying habits of the world’s wealthy.

Since 2014, global and local factors have held Dubai’s prime property market back despite the large population of well-heeled buyers. The oil-price meltdown paired with stricter mortgage regulations and an oversupply of luxury development have caused several years of declining prices in the city. In 2017, prime prices fell 5%, according to Knight Frank.

But recent data points to the beginnings of a recovery, as prime prices bottom out and the government logs increased activity. Luxury transactions were up 6.6% in the third quarter of 2017 and up 5.7% in the fourth quarter, according to the report.

The predicted increase of wealthy residents, particularly a cohort of Chinese, in the United Arab Emirates is expected to help turn around the slumped luxury market in Dubai.

Over the past two years, the Dubai Investment Development Agency has forged closer commercial relations with Shanghai—bringing the wave of new ultra-wealthy in China to Dubai. The number of Chinese worth more than $30 million has nearly quadrupled over the past decade, according to the report.

Where will the newest wealthy live?

Established luxury neighborhoods in Dubai include the man-made archipelago Palm Jumeirah, Downtown Dubai—home to the Burj Khalifa— as well as Emirates Hills and The Lakes, according to Knight Frank. New infrastructure near these prime hubs is expected to strengthen their desirability and improve prices.

I am an Indian citizen and I want to invest in Dubai to secure residency. If I buy property in Dubai, will they give me a lifelong residence visa? What are the criteria to get a visa if I buy an apartment? SS, India

It is not possible for any non-GCC national to get lifelong residency in the UAE, even if they purchase property. While it can be possible for an expat to obtain a residency visa based on property ownership, the rules are very strict and the visas are valid for either six months or two years only. There is no guarantee that anyone buying a property will be granted a visa and they do not permit a person to undertake any form of employment in the UAE.

To make an application, the property must have a purchase price of a minimum of Dh1 million and the outstanding mortgage must be no more than 50 per cent. The applicant must have an income of at least Dh10,000 per month from a verifiable source, but this cannot be not from employment in the UAE. Any application must be made to Dubai Economy and the Dubai Land Department for consideration with visas granted on a case-by-case by case basis – approval is by no means automatic. Visas are issued for up to two years under the current rules. In accordance with standard Dubai rules, applicants must undergo a medical examination and organise their own Dubai Health Authority compliant medical insurance. I would reiterate that a property related visa does not permit an individual to work in the UAE, only to reside here, so if they take up employment the property visa must be cancelled with immediate effect and there is no guarantee that any application will be approved or renewed.

What is the procedure if I want to change jobs? I am on a limited contract visa and have been in my job for six months. SH, Sharjah

Formal notice of resignation is the first step and this should be provided in writing. In most cases 30 days’ notice is required per UAE Labour Law but check your contract as in a few cases a longer period may be required. Someone breaking a fixed contract may also receive an employment ban depending on their level of education and the action of the employer, although this would not apply if changing employer within the same free zone.

As SH will be breaking the terms of a limited contract, he must pay a penalty in accordance with Article 116, which states: “Should the contract be rescinded by the worker for causes not set forth in Article 121, the worker shall be bound to compensate the employer for the loss incurred thereto by reason of the rescission of the contract, provided that the amount of compensation does not exceed the wage of half a month for the period of three months, or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.” This penalty is roughly equivalent to income for 45 days.

I will soon complete six year of service with my company and have been on a limited contract. I will be leaving and received the details of my end of service gratuity calculations from the HR department and they state that I am entitled to gratuity of 21 days for the first five years and 30 days for the sixth year. From what I have read in online articles, I am entitled to 30 days each year from the first year as I have completed more than five years and I am on a limited contract. HR will not believe me and say I need to show them the law that proves this. Can you help? GB, Dubai

In this situation the HR department is correct. This is covered in Article 132 of UAE Labour Law which states: “The worker having spent one year or more in continuous service shall be entitled to an end of service gratuity upon the termination of his service. The days of absence from work without pay shall not be included in the calculation of the period of service, and the gratuity shall be calculated as follows: 1 – The wage of twenty-one days for each of the first five years of service. 2 – The wage of thirty days for every additional year. Always provided that the total gratuity does not exceed the wage of two years.” A payment of 30 days is clearly for ‘additional’ years, so for those in excess of the first five years. GB is entitled to no more than the HR department has advised.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 25 years’ experience. Contact her at [email protected] Follow her on Twitter at @FinancialUAE.

The advice provided in our columns does not constitute legal advice and is provided for information only.

Irrespective of where you stay or the kind of accommodation you have, we can all agree that rent is the single biggest expense each month for any expat resident in the UAE. For Dubai, experts say that at least 40 per cent of a resident’s income goes into paying rent.

A one-bedroom apartment could cost anywhere from Dh50,000 to Dh90,000 per year as rent depending on where you stay. While rents have reportedly been falling across the country, these ranges still apply in most areas.

Is buying worth it? Yes, if you’re planning to be in Dubai for a really long time – upwards of 15 years we would say. Most people in the UAE end up staying longer than they originally thought. So, unless you’re only planning to stay less than 10 to 12 years, buying might be a great option for you.

Comparing the two: Buying vs. Renting in Dubai For the purpose of this comparison we are using a one-bedroom apartment near the Al Jafiliya area as a case study. For renting, we are using Dh65,000 as our sample price (based on the RERA Rental Increase Index) and Dh1.3 million as the sale price for our off-plan apartment.

One-time expenses

As you can see the initial spend for property purchase is almost 20 times that of a rental. However, most of it is down payment, which acts as initial equity for the asset that will be your home.

Yearly expenses for 20 years The following are the yearly expenses for 20 years in each scenario. We are going to assume that the rent increases by 15 per cent after ten years (easier for calculation) and that payment of mortgage amount stays the same per year (which is the case usually.)

Total amounts In 20 years, renting could cost you upwards of Dh2.16 million not including utility bills and other amenities. Buying a house spread over the same period of time could cost you upward of Dh1.76 million not taking into account other incidentals and utilities. In comparison, everything you pay to buy is directly or indirectly towards something in your own name; unlike rent which is payment for a service with undeniable perks of stability, flexibility and no debt issues.

Verdict For buying: At the end of 20 years you end up paying less for buying overall even after the initial spend. Your average monthly rent is at a stable low of around Dh4,166. Not to mention that you would then be a proud owner of Dubai property, which could be sold or rented out to earn back all your investment with profits.

The 40 per cent you spend on living in Dubai comes back to you in another form. The loan doesn’t require any collateral other than the property itself. For renting: Owning property comes with the financial pressure of having to stay and work in the UAE until your mortgage is paid off. Unlike for your home country, this means having valid employment (and residency) to keep your monthly payments going. Selling your property is not as easy as you would think and this means you may not be able to leave at a moment’s notice. The loan or mortgage uses the property as collateral, so in case you can’t pay off the loan, the property goes to the bank.

Disclaimer: This is a guide only and uses approximate figures and current expense items for the comparison. Gulf News is not responsible for any new items of expense being added or changes in fees at any time. The costs and rents used are averages to illustrate the differences.

Dubai: According to the executive regulations on value added tax (VAT) published last week, the mandatory registration threshold is Dh375,000.

This means that anyone with a turnover of Dh375,000 or more is required to register their business for VAT, the Federal Tax Authority (FTA) and Ministry of Finance (MoF) said in the recently release regulations.

The voluntary registration threshold is Dh187,500, with companies of that size or above able to register for VAT too. The failure of a taxable person or business to submit a registration application within the time frame specified in the tax law is liable for a Dh20,000 fine.

Also according to the executive regulations, companies are able to register as a tax group.

Through this mechanism, more than one company can register for VAT as a group, under a single common control, according to Dubai-based Jitendra Consulting Group. They say that the main benefit of group registration is to simplify the procedures and save costs through consolidated tax returns and a single VAT registration.

The group’s tax returns and payments are carried out by the member who acts as a representative of the group, the FTA has stated. All the members are jointly liable, however.

The Federal Tax Authority (FTA) has announced the supplies that will be subject to Value Added Tax (VAT) as of January 1, 2018, revealing selected sectors that will be assigned zero-rated tax, such as education, healthcare, oil and gas, transportation and real estate.

Selected supplies in sectors such as transportation, real estate, financial services will be completely exempt from VAT, whereas certain government activities will be outside the scope of the tax system (and, therefore, not subject to tax).

These include activities that are solely carried out by the government with no competition with the private sector, activities carried out by non-profit organisations.

The UAE Cabinet is expected to issue a decision to identify the government bodies and non-profit organisations that are not subject to VAT.

The below table outlines all supplies that will be subject to the 5% Value Added Tax, as well as zero-rated supplies and exempt supplies:

There is a property for every income bracket in Dubai. The lower sales prices and attractive payment plans offered by developers in Dubai are resulting in more first-time home buyers hopping on the property bandwagon. The introduction of new innovative mortgage products by some local banks has also contributed towards this increased activity.

Even someone with a salary of Dh10,000 can climb onto the property ladder today, provided they can arrange for the up-front payment and registration charges.

“There are enough properties available to cater across a wide range of salary brackets. Prices and accessibility criteria for a home mortgage, traditionally the two biggest barriers for new entrants to the property market, have been lowered, thus resulting in an uptick in market activity,” says Lynnette Abad, partner and head of Property Monitor/Cavendish Maxwell.

Apartments are the achievable properties for salaries between Dh10,000 to Dh15,000.

“The average one-bedroom apartment in new residential areas such as Dubai Silicon Oasis, Liwan, etc., is worth about Dh600,000 with a down payment of Dh150,000 and Dh30,000 in registration expenses. The buyer has to pay about Dh2,200 a month. This is easily achievable for most people earning Dh15000+ a month. This is much less than their rent,” suggests Sanjay Chimnani, managing director, Raine & Horne Dubai.

This year, the top areas for affordable properties to one with a monthly salary of Dh10,000 are (in order) International City, Jumeirah Village Circle (JVC), Al Furjan and Dubai South, estimates Property Monitor, a real estate intelligence platform.

For someone with a monthly salary of Dh15,000, the top areas with affordable properties are Dubai South, JVC, Business Bay and Dubai Sports City, the consultancy adds.

However, if you are looking to buy a villa or a townhouse, it would require a monthly salary of Dh25,000. “It will fetch you a townhouse in master-planned communities such as Town Square and Reem, Mira. Some of the other top areas in this salary bracket are Dubai Marina, Business Bay and The Lagoons,” informs Abad.

The challenge for most buyers is to arrange for the down payment plus registration costs of about 30 per cent. “If this was to be reduced to 15 per cent, we would see an even greater shift to ownership in this market,” suggests Chimnani.

However, the moot question is whether a person earning Dh10,000 a month is eligible for a mortgage. Provided the customer does not have any major loans (personal, credit card and auto), s/he would be eligible for a house loan of up to 25 years, subject to age criteria which restricts payments to the age of 65.

“People earning Dh10,000 and above can apply for a mortgage. The minimum salary requirement for a mortgage is Dh10,000. However, there are only a few banks who do mortgages for clients with Dh10,000 income and, therefore, options for these clients are limited. Majority of the banks require a minimum salary of Dh15,000 and above,” says Carol Monis, head of mortgages, MortgageMe.ae, a group of mortgage brokers in Dubai.

She adds that “most of our mortgage clients are end-users who fall into an income bracket of Dh20,000 to Dh25,000”.

Dhiren Gupta, managing director, 4C Mortgage Consultancy, adds in the same vein that the average income group buying property in Dubai is around Dh25,000 to Dh35,000 and they are primarily buying mid-priced property worth of Dh1.5 million to Dh2 million.

“With such income, they can easily qualify for a loan, barring they do not have pre-existing liabilities and age limitation is not a barrier. Moreover, banks are more comfortable to funding such profiles wherein the property will be utilised for self-use,” concludes Gupta.

The Ministry of Finance, MoF, Monday announced that His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, signed the Executive Regulation for the Federal Decree-Law No. (8) of 2017 on Value Added Tax, VAT.

The Regulation defines VAT as the 5% tax imposed on the import and supply of goods and services at each stage of production and distribution, including what is a deemed supply, with the exception of specific supplies subject to the zero rate and what is exempted as specified in the Decree-Law.

The tax will go into force effective January 2018, and all business have to take all necessary measures to avoid the risk of non-registration by 1st January, 2018, which would entail fines as stipulated in Cabinet Decision No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.

Commenting on the milestone, Younis Haji Al Khoori, Undersecretary of MoF, said, “Today’s signing of the Executive Regulation by the Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, marks a new milestone in the application of an efficient taxation system in line with best international standards with the ultimate objective of improving performance of primary sectors and enhancing social welfare.”

The first title of the Regulation includes the definitions of terms used, while the second title deals with supply, which includes articles regulating the supply of goods and services, as well as supplies that consist of more than one component and the exceptions related to deemed supplies.

The third title of the document tackles the subject of registration, such as mandatory and voluntary registration, related parties, conditions to be met to register tax groups and appointing a representative member, deregistration, exception from registration, registration on law coming into effect and obligations to be met before deregistration.

Meanwhile, the fourth title looks into rules relating to supply, including articles on the date of supply, place of supply for goods, place of supply of services for real estate, transport services, telecommunications and electronic services, intra-GCC supplies, the market value, prices to be inclusive of tax, discounts, subsidies and vouchers.

Furthermore, title five discusses profit margins and explains how to calculate VAT based on profit margins, while title six addresses zero-rated goods and services, including telecommunications, international transportation of passengers or goods, investment grade precious metals, new and converted residential buildings, as well as healthcare, education and buildings earmarked for charity.

Title seven clarifies provisions relating to products and services exempt from value added tax, namely: the supply of certain financial services as specified in the Executive Regulation, the supply of residential (non-zero-rated) buildings either by sale or lease, the supply of bare land, and the supply of local passenger transport.

The eighth title of the Regulation then addresses accounting for tax on specific supplies and includes articles relating to supplies with more than one component, general provisions in relation to import of goods and applying the reverse charge on goods and services, as well as moving goods to implementing states and imports by non-registered persons.

In title nine, the Executive Regulation address Designated Zones in article (51), while title 10 provides further detail on calculating due tax, recovery of input tax relating to exempt supplies, input tax not recoverable, and special cases for input tax. The following titles 11 includes article (55) on apportioning input tax and article (56) on adjusting input tax after recovery, whereas title 12 addresses the capital asset scheme in article (57) and adjustments within the capital asset scheme in article (58).

Title 13 of the Regulation includes article (59) on tax invoices, article (60) on tax credit notes and article (61) on fractions of the fils. Then in title 14, the Executive Regulation discusses Tax Periods and Tax Returns, before title 15 goes into recovery of excess tax in article (65). Adding to that, title 16 tackles recovery in other cases and includes article (66) on new housing for nationals, article (67) on business visitors, article (68) on tourists and article (69) on foreign governments.

The 17th title includes article (70) on Transitional Rules, article (71) on record-keeping requirements and article (72) on keeping records of supplies made. Meanwhile, the 18th and final titles discusses closing provisions.

28 Nov 2017

Who we are

The team, at Masterkey Properties, comprises indigenous experts in renting, selling and managing commercial properties and villas in Dubai, UAE. Established in 2006, the company has over a decade of experience in tracking new property developments and estimating trends in prime market areas that help clients in meeting their requirements. We are currently selling and leasing out properties in all areas of Dubai. We strongly believe if you have a requirement for a home or office space, we will help you find it!